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8-K - 8-K - SATCON TECHNOLOGY CORPa12-11836_18k.htm

Exhibit 99.1

 

SATCON® REPORTS FIRST QUARTER 2012 FINANCIAL RESULTS

 

Boston, Massachusetts — May 9, 2012 - Satcon Technology Corporation® (NASDAQ CM:SATC), a leading provider of utility scale power conversion solutions for the renewable energy market, today announced its results for the first quarter ended March 31, 2012.

 

Revenue for the first quarter of 2012 was $24.3 million, compared with revenue of $36.0 million in the fourth quarter of 2011, reflecting the anticipated seasonal slowdown in installations during the winter months.  During the quarter, the company shipped 98 MWs of its industry-leading PowerGate® Plus, Prism® Platform, and Equinox® solutions.  North America continued to be the company’s strongest performing region in Q1, representing 96% of total revenue and megawatts shipped.

 

Gross margin for the quarter was 1%, compared with -64% in the fourth quarter of 2011.  The company’s gross margin performance was impacted by seasonally lower sales volumes and the closing of its Canadian manufacturing facility, where Satcon transferred its manufacturing to contract manufacturers in China and Canada.

 

Bookings for the first quarter were approximately $45.6 million, including $3.1 million in service and extended warranty, an increase of approximately 134% from the fourth quarter of 2011 and 29% from the first quarter of 2011. In addition, the first quarter of 2012 was the company’s most successful bookings period in four quarters, with a book-to-bill ratio of 1.9:1.

 

“During the first quarter, we made significant progress on our strategic initiative and operating plan,” said Steve Rhoades, Satcon’s President and Chief Executive Officer.  “We improved our operational efficiency by reducing costs of our central inverter and MV platform product lines, and moved to a variable, contract manufacturing model with the closure of our Canada facility.  We also strengthened our balance sheet and further reduced our working capital, while paying down a significant portion of our short- and long-term debt.  These actions have strengthened our cash flow position and have provided sufficient liquidity to meet our obligations and pursue our long-term growth strategy.”

 

“We expect Q2 revenue to be between $24 million and $28 million, and gross margin to be in the mid- to high-teens,” concluded Rhoades.

 

Conference Call Reminder

 

The company will hold a conference call to review its financial results and business highlights today, May 9, 2012 at 5:00 p.m. ET.  During the conference call, the company may answer questions concerning business and financial developments and trends, and other business and financial matters. The company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

 

The conference call will be webcast live over the Internet and can be accessed on the Investor Relations section of the company’s website at http://investor.satcon.com.  The conference call also can be

 



 

accessed by dialing (877) 407-8289 (U.S. and Canada) or (201) 689-8341 (International).  Interested parties that are unable to listen to the live call may access an archived version of the webcast on Satcon’s website.

 

About Satcon

 

Satcon Technology Corporation is a leading provider of utility-grade power conversion solutions for the renewable energy market, enabling the industry’s most advanced, reliable and proven clean energy alternatives.  For more than ten years, Satcon has designed and delivered advanced power conversion products that enable large-scale producers of renewable energy to convert the clean energy they produce into grid-connected efficient and reliable power.  To learn more about Satcon, please visit http://www.Satcon.com.

 

Safe Harbor

 

Statements made in this document that are not historical facts or which apply prospectively are forward-looking statements that involve risks and uncertainties.  These forward-looking statements are identified by the use of terms and phrases such as “will,” “intends,” “believes,” “expects,” “plans,” “anticipates” and similar expressions.  Forward looking statements contained in this press release include, without limitation, the company’s expectations (i) that second-quarter 2012 revenue will between $25 million and $30 million; (ii) that gross margin will be in the mid-to high-teens; and (iii) regarding its future prospects.  Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company’s expectation.  Additional information concerning risk factors is contained from time to time in the company’s SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC.  Forward-looking statements contained in this press release speak only as of the date of this release.  Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date.  The company expressly disclaims any obligation to update the information contained in this release.

 

Contact

 

Leah Gibson

Director of Investor Relations

Satcon Technology Corporation
(617) 910-5515
leah.gibson@Satcon.com

 



 

SATCON TECHNOLOGY CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

March 31,
2012

 

December 31,
2011

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

15,916,614

 

$

21,586,497

 

Accounts receivable, net of allowances of $3,400,492 and $2,231,616 at March 31, 2012 and December 31, 2011, respectively

 

34,087,346

 

46,082,592

 

Inventory

 

46,029,526

 

49,937,028

 

Note receivable

 

100,000

 

4,114,388

 

Prepaid expenses and other current assets

 

2,085,174

 

2,468,202

 

Total current assets

 

98,218,660

 

124,188,707

 

Property and equipment, net

 

10,565,644

 

11,091,910

 

Other long-term assets

 

576,990

 

676,850

 

Total assets

 

$

109,361,294

 

$

135,957,467

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Line of credit

 

$

20,487,546

 

$

34,675,000

 

Accounts payable

 

55,040,479

 

51,955,218

 

Accrued payroll and payroll related expenses

 

2,142,444

 

3,011,981

 

Other accrued expenses

 

7,473,788

 

6,959,197

 

Accrued restructuring costs

 

896,285

 

1,543,830

 

Note payable, current portion, net of discount of $273,796 and $320,592 at March 31, 2012 and December 31, 2011, respectively

 

4,093,930

 

3,912,600

 

Current portion of subordinated convertible note

 

10,360,000

 

12,369,336

 

Current portion of deferred revenue

 

3,460,394

 

6,015,235

 

Total current liabilities

 

103,954,866

 

120,442,397

 

Warrant liabilities

 

50,000

 

131,530

 

Note payable, net of current portion and discount of $71,275 and $120,931 at March 31, 2012 and December 31, 2011, respectively

 

4,010,117

 

5,104,157

 

Subordinated convertible note, net of current portion

 

 

5,870,664

 

Deferred revenue, net of current portion

 

27,194,160

 

25,525,032

 

Other long-term liabilities

 

715,076

 

709,986

 

Total liabilities

 

135,924,219

 

157,783,766

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

Preferred stock; $0.01 par value 1,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2012 and December 31, 2011

 

 

 

Common stock; $0.01 par value, 200,000,000 shares authorized; 135,125,036 and 121,803,656 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively

 

1,351,251

 

1,218,037

 

Additional paid-in capital

 

314,109,889

 

305,310,085

 

Accumulated deficit

 

(340,594,497

)

(326,924,853

)

Accumulated other comprehensive loss

 

(1,429,568

)

(1,429,568

)

Total stockholders’ deficit

 

(26,562,925

)

(21,826,299

)

Total liabilities and stockholders’ deficit

 

$

109,361,294

 

$

135,957,467

 

 



 

SATCON TECHNOLOGY CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,
2012

 

March 31,
2011

 

Product revenue

 

$

24,288,514

 

$

62,004,937

 

Cost of product revenue

 

24,127,818

 

47,132,525

 

Gross margin

 

160,696

 

14,872,412

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Research and development

 

3,236,226

 

6,136,333

 

Selling, general and administrative

 

9,975,174

 

10,223,313

 

Restructuring charges

 

292,221

 

 

Total operating expenses

 

13,503,621

 

16,359,646

 

 

 

 

 

 

 

Operating loss

 

(13,342,925

)

(1,487,234

)

 

 

 

 

 

 

Change in fair value of convertible note and warrants

 

450,041

 

123,561

 

Other income (expense), net

 

116,567

 

(199,856

)

Interest income

 

455

 

151

 

Interest expense

 

(893,782

)

(575,249

)

Net loss before provision for income taxes

 

(13,669,644

)

(2,138,627

)

Provision for income taxes

 

 

 

Net loss

 

(13, 669,644)

 

(2,138,627

)

 

 

 

 

 

 

Net loss per weighted average share, basic and diluted

 

$

(0.11

)

$

(0.02

)

 

 

 

 

 

 

Weighted average number of common shares, basic and diluted

 

128,096,372

 

118,726,322